Defination of Production
In economics, production is the act of creating output, a goods or service which has value and contributes to the utility of individuals.The act may or may not include factors of production other than labor. Any effort directed toward the realization of a desired product or service is a "productive" effort and the performance of such act is production. The relation between the amount of inputs used in production and the resulting amount of output is called the production function.Stages of production
Primary producers directly extract natural resources.Production can be distinguished into three stages:
- Secondary producers process resources to turn them into intermediate goods.
- Tertiary producers provide final goods or services to the consumer.
